IDEAS home Printed from https://ideas.repec.org/a/mhr/jinste/urnsici0932-4569(200306)1592_362tdmina_2.0.tx_2-7.html
   My bibliography  Save this article

The Dutch Miracle: Institutions, Networks, and Trust

Author

Listed:
  • Frank A.G. den Butter
  • Robert H.J. Mosch

Abstract

Between 1982 and 2000, The Netherlands experienced a remarkable economic recovery. Mutual trust among the participants in the social-economic policy preparation process was one of the main driving forces of this recovery. The institutional framework, in which government, unions, employer organisations, central bank, and advisory bodies frequently meet each other in formal and informal networks, enhanced this trust. The resulting cooperativemood led to effectiveness in dealing with (collective action) problems. The framework thus functioned as amechanism that transformed interpersonal and interorganisational trust into positive macroeconomic effects.

Suggested Citation

  • Frank A.G. den Butter & Robert H.J. Mosch, 2003. "The Dutch Miracle: Institutions, Networks, and Trust," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(2), pages 362-391, June.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200306)159:2_362:tdmina_2.0.tx_2-7
    as

    Download full text from publisher

    File URL: https://www.mohrsiebeck.com/artikel/the-dutch-miracle-institutions-networks-and-trust-1016280932456032974844
    Download Restriction: Fulltext access is included for subscribers to the printed version.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hashimoto, Masanori, 1981. "Firm-Specific Human Capital as a Shared Investment," American Economic Review, American Economic Association, vol. 71(3), pages 475-482, June.
    2. Freeman, Richard B., 1998. "War of the models: Which labour market institutions for the 21st century?1," Labour Economics, Elsevier, vol. 5(1), pages 1-24, March.
    3. Colin F. Camerer, 1997. "Progress in Behavioral Game Theory," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 167-188, Fall.
    4. Teulings,Coen & Hartog,Joop, 2008. "Corporatism or Competition?," Cambridge Books, Cambridge University Press, number 9780521049399.
    5. Beaudry, Paul & DiNardo, John, 1991. "The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 665-688, August.
    6. Gordon, David M, 1994. "Bosses of Different Stripes: A Cross-National Perspective on Monitoring and Supervision," American Economic Review, American Economic Association, vol. 84(2), pages 375-379, May.
    7. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
    8. Arthur J. Hosios, 1990. "On The Efficiency of Matching and Related Models of Search and Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(2), pages 279-298.
    9. Colin F. Camerer & Richard H. Thaler, 1995. "Anomalies: Ultimatums, Dictators and Manners," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 209-219, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paul T. de Beer & Robert H.J. Mosch, 2007. "The waning and restoration of social norms: a formal model of the dynamics of norm compliance and norm violation," DNB Working Papers 131, Netherlands Central Bank, Research Department.
    2. Jante Parlevliet, 2017. "What drives public acceptance of reforms? Longitudinal evidence from a Dutch pension reform," Public Choice, Springer, vol. 173(1), pages 1-23, October.
    3. W. Jos Jansen & Ad C. J. Stokman, 2006. "International Rent Sharing and Domestic Labour Markets: A Macroeconomic Analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(4), pages 792-813, December.
    4. Robert Gillanders & Olga Neselevska, 2018. "Public Sector Corruption and Trust in the Private Sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 30(8), pages 1288-1317, November.
    5. Frank A.G. den Butter, 2012. "Managing Transaction Costs in the Era of Globalization," Books, Edward Elgar Publishing, number 14748.
    6. Lex Borghans & Ben Kriechel, 2009. "Wage Structure and Labor Mobility in The Netherlands, 1999-2003," NBER Chapters, in: The Structure of Wages: An International Comparison, pages 125-148, National Bureau of Economic Research, Inc.
    7. Frank A.G. den Butter & Sjoerd ten Wolde, 2011. "The Institutional Economics of Stakeholder Consultation; Reducing Implementations Costs through 'Matching Zones'," Tinbergen Institute Discussion Papers 11-162/3, Tinbergen Institute.
    8. David Chavanne, 2018. "Generalized Trust, Need for Cognitive Closure, and the Perceived Acceptability of Personal Data Collection," Games, MDPI, vol. 9(2), pages 1-18, April.
    9. Lewis, John, 2009. "Hitting and hoping?: Meeting the exchange rate and inflation criteria during a period of nominal convergence," European Journal of Political Economy, Elsevier, vol. 25(4), pages 508-524, December.
    10. W. Jos Jansen, 2008. "Inside The Impossible Triangle: Monetary Policy Autonomy In A Credible Target Zone," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 216-228, April.
    11. John T. Addison, 2016. "Collective bargaining systems and macroeconomic and microeconomic flexibility: the quest for appropriate institutional forms in advanced economies," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-53, December.
    12. Butter, Frank A.G. den & Koppes, Silvie Y., 2003. "Strikes in France and the Netherlands; a comparison of labour market institutions," Serie Research Memoranda 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    13. Berggren, Niclas & Daunfeldt, Sven-Olov & Hellström, Jörgen, 2014. "Social trust and central-bank independence," European Journal of Political Economy, Elsevier, vol. 34(C), pages 425-439.
    14. den Butter, Frank A. G. & van Gameren, Edwin, 2004. "Employment policy in a dynamic labour market: simulations using a multifirm flow model," Journal of Economic Behavior & Organization, Elsevier, vol. 53(2), pages 283-301, February.
    15. Butter, Frank A.G. den, 2006. "The industrial organisation of economic policy preparation in the Netherlands," Serie Research Memoranda 0007, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    16. Alexander Hijzen & Pedro S. Martins & Jante Parlevliet, 2017. "Collective Bargaining Through the Magnifying Glass: A Comparison Between the Netherlands and Portugal," IMF Working Papers 2017/275, International Monetary Fund.
    17. Lei Delsen & Erik Poutsma, 2005. "Labour market institutions and economic performance in the Netherlands," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 169-196.
    18. Kang, Byeongwoo & Nabeshima, Kaoru & Cheng, Fang-Ting, 2015. "Avoiding the middle income trap : indigenous innovative effort vs foreign innovative effort," IDE Discussion Papers 509, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    19. Eichhorst, Werner & Wintermann, Ole, 2005. "Generating Legitimacy for Labor Market and Welfare State Reforms: The Role of Policy Advice in Germany, the Netherlands, and Sweden," IZA Discussion Papers 1845, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrea Ricci & Robert Waldmann, 2015. "Firm financed training and pareto improving firing taxes," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 201-220, August.
    2. Pull, Kerstin, 1999. "What is the fair wage? A model of as-if-co-operation," Quint-Essenzen 58, University of Trier, Institute for Labour Law and Industrial Relations in the European Community (IAAEG).
    3. Miguel Costa-Gomes & Klaus G Zauner, 2001. "A Social Utility Explanation of Results in Experimental Ultimatum Bargaining Games," Levine's Working Paper Archive 563824000000000069, David K. Levine.
    4. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2009. "Homo Reciprocans: Survey Evidence on Behavioural Outcomes," Economic Journal, Royal Economic Society, vol. 119(536), pages 592-612, March.
    5. Kimbrough, E.O. & Vostroknutov, A., 2012. "Rules, rule-following and cooperation," Research Memorandum 053, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    6. Joshua M. Epstein, 2007. "Agent-Based Computational Models and Generative Social Science," Introductory Chapters, in: Generative Social Science Studies in Agent-Based Computational Modeling, Princeton University Press.
    7. Armin Falk & Ernst Fehr & Urs Fischbacher, 2003. "On the Nature of Fair Behavior," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 20-26, January.
    8. Jeffrey P. Carpenter, 2005. "Endogenous Social Preferences," Review of Radical Political Economics, Union for Radical Political Economics, vol. 37(1), pages 63-84, March.
    9. Christian Korth, 2009. "Reciprocity—An Indirect Evolutionary Analysis," Lecture Notes in Economics and Mathematical Systems, in: Fairness in Bargaining and Markets, chapter 0, pages 35-55, Springer.
    10. He, Haoran & Wu, Keyu, 2016. "Choice set, relative income, and inequity aversion: An experimental investigation," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 177-193.
    11. Cai, Xiaoming & Gautier, Pieter A. & Teulings, Coen N. & Watanabe, Makoto, 2014. "Collective versus decentralized wage bargaining and the efficient allocation of resources," Labour Economics, Elsevier, vol. 26(C), pages 34-42.
    12. Lans Bovenberg & Coen Teulings, 2008. "Rhineland exit," CPB Discussion Paper 101.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    13. Ball, Sheryl & Eckel, Catherine C., 1998. "The economic value of status," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 27(4), pages 495-514.
    14. I. Sebastian Buhai & Miguel A. Portela & Coen N. Teulings & Aico van Vuuren, 2014. "Returns to Tenure or Seniority?," Econometrica, Econometric Society, vol. 82(2), pages 705-730, March.
    15. Michèle Belot & Jan C. van Ours, 2004. "Does the recent success of some OECD countries in lowering their unemployment rates lie in the clever design of their labor market reforms?," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 621-642, October.
    16. Leibbrandt, Andreas & López-Pérez, Raúl & Spiegelman, Eli, 2023. "Reciprocal, but inequality averse as well? Mixed motives for punishment and reward," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 91-116.
    17. Messe, P.J., 2011. "Taxation of early retirement windows and delaying retirement: The French experience," Economic Modelling, Elsevier, vol. 28(5), pages 2319-2341, September.
    18. M. Christian Lehmann, 2022. "Fairness preferences as a cause of inefficient war," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 6(1), pages 33-36, December.
    19. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    20. Paul J. Devereux, 2004. "Cyclical Quality Adjustment in the Labor Market," Southern Economic Journal, John Wiley & Sons, vol. 70(3), pages 600-615, January.

    More about this item

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mhr:jinste:urn:sici:0932-4569(200306)159:2_362:tdmina_2.0.tx_2-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Wolpert (email available below). General contact details of provider: https://www.mohrsiebeck.com/jite .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.